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SDG Law Blog: Mark K. Ephraim, Attorney at Stenger, Diamond & Glass (SDG Law) Secures Victory in Bankruptcy Case

Stenger, Diamond & Glass (SDG Law) Secures Victory in Bankruptcy Case

  • July 28, 2023

Mary K. Ephraim attorney | SDG Law: Stenger, Diamond & Glass LLPStenger, Diamond & Glass (SDG Law) is thrilled to announce a significant win for their client, M-M2 Re Holdings 1, LLC, in a high-profile bankruptcy case. Mary K. Ephraim, Attorney at SDG Law, represented the client, which was owed money by the person who had filed for bankruptcy.  The victory not only marks a triumph for the client but also underscores the firm’s commitment to providing exceptional legal representation. 

The Bankruptcy Code permits people and businesses to file for different kinds of protection, which grant varying rights to pay back or discharge debts—provided that the debtor is eligible for the chapter that they wish to file under.  

In this case, the debtor filed for protection as a “family farmer” under chapter 12 of the Bankruptcy Code.  To be eligible for this chapter, the debtor had to show that she was engaged in a “farming operation” that qualified for chapter 12 relief.

After careful deliberation and a thorough examination of the facts and the text of the Bankruptcy Code, the Hon. Cecelia G. Morris of the Poughkeepsie Bankruptcy Court issued a written decision granting SDG Law’s motion to dismiss the bankruptcy case. The Court ruled that the activities described by the debtor, such as boarding, breeding, training, and appraising horses, did not constitute a “farming operation” as defined by the law. The decision reinforced the notion that activities required to produce crops or livestock are fundamental to meeting the eligibility criteria for chapter 12 relief.

“This win is a testament to the dedication and expertise of our legal team, and the fairness of the Bankruptcy Court,” said attorney Mary K. Ephraim. “We are pleased with the Court’s ruling. Bankruptcy is difficult for creditors, and it is important that only eligible debtors receive the benefits they have filed for.”

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